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SCHW

"It has always been our practice to make clients whole in cases of unauthorized account activity. The security guarantee turned that historic practice into a public promise 10-years ago"

SAN FRANCISCO--(BUSINESS WIRE)--Today, Schwab announced the launch of SchwabSafe™, an online resource
with perspectives and tips on cyber security for clients. The first
investment services firm to provide a Security Guarantee that covers
100% of any losses in any Schwab accounts due to unauthorized activity
(launched nearly 10 years ago), Schwab continues to expand its resources
for online security and fraud prevention to include educational programs
such as SchwabSafe, client seminars and live consultations, and its
numerous behind-the-scenes methods of authenticating clients to
safeguard client accounts against unauthorized activity and fraud.

“It has always been our practice to make clients whole in cases of
unauthorized account activity. The security guarantee turned that
historic practice into a public promise 10-years ago,” said Jim McGuire,
chief information officer at Schwab. “While a guarantee provides a
safety net, everyone has a role to play in security protection. We
provide multiple behind-the-scenes methods of authenticating clients and
we encourage our clients to learn as much as they can about safe online
security practices – not just for their interaction with us, but in all
aspects of online commerce,” McGuire said.

The company also announced today it will enhance its password protocols
beginning in August 2015, to include the following parameters:

Can be a minimum of 6 and a maximum of 234 characters

Must include at least one number

Must include at least one letter

Will be case-sensitive

Will be able to include commonly used symbols

Will be able to include internal spaces

“While password complexity is only one part of information security, we
knew that many of our clients wanted greater flexibility in choosing
passwords across our electronic channels so we’re pleased to be
launching that initiative this August as well. Technology and security
are always evolving, these changes are part of an ongoing process of
enhancements to Schwab’s existing client authentication and fraud
detection capabilities which will continue over time,” McGuire said.

Schwab clients will not be required to change their existing passwords,
but will now have the ability to choose a longer and/or more complex
password if they wish to do so. While clients do not have to take
advantage of the new password enhancements, Schwab does encourage
periodically changing passwords as a routine best practice for account
security. Other recommended best practices involving passwords include
the following:

Don’t use personal information such as your birthday as part of your
login ID.

Create a unique password for each financial institution you do
business with and change it every six months. Don’t
share your passwords.

Consider adding a verbal password to your Schwab account for an extra
layer of security when you call us.

For maximum peace of mind, consider getting a free security token,
which can make every login even more secure. Tokens are available by
calling 800-435-4000.

At Charles Schwab we believe in the power of investing to help
individuals create a better tomorrow. We have a history of challenging
the status quo in our industry, innovating in ways that benefit
investors and the advisors and employers who serve them, and championing
our clients’ goals with passion and integrity.